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    Hyperinflation Chapter 22 and 23

    Uploaded by

    Paupau

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    © All Rights Reserved
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    Hyperinflation Chapter 22 and 23

    Uploaded by

    Paupau
    9 views2 pages

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    © © All Rights Reserved

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    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    9 views2 pages

    Hyperinflation Chapter 22 and 23

    Uploaded by

    Paupau

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    You are on page 1of 2

    1.

    1. A
    2. B

    Historical Fraction Restated


    Cash P 3,500,000 3,500,000
    Inventory 27,000,000 300/270 30,000,000
    PPE          9,000,000 300/150 18,000,000
    Total assets P 39,500,000 51,500,000

    Index number 2018 (240) Index number (2019) 300 / 2 =270


    Total assets 51,500,000
    Total liabilities (7M + 5M) (12,000,000)
    Total SHE P 39,500,000
    Share capital (4M x 300/100) (12,000,000)
    Retained earnings P27,500,000

    2.
    1. A
    2. A
    3. A
    Historical Fraction Restated
    Cash P 2,000,000  2,000,000
    Trade and other receivable 2,600,000 2,600,000
    PPE          4,600,000 280/125 10,304,000
    Total assets P14,904,000

    Total assets P14,904,000


    Total liabilities (1,800,000)
    Total SHE P13,104,000
    Share capital (4M x 280/112) (10,000,000)
    Retained earnings P3,104,000
    3.
    1. B
    2. B
    3. B
    Total assets 6,000,000
    Total liabilities (600,000)
    Total SHE P5,400,000
    Share capital (5,200,000)
    Retained earnings P200,000

    Historical Fraction Restated


    Cash 100,000 100,000
    Accounts receivable 1,200,000 1,200,000
    Inventory 800,000 800,000
    Land 400,000 260/100 1,040,000
    Building 1,000,00 260/100 2,600,000
    Accumulated Depreciation 100,000 260/100 (260,000)
    Equipment 500,000 260/125 1,040,000
    Accumulated Depreciation 250,000 260/125 (520,000)
    Total assets P3,650,000 P6,000,000

    Accounts payable 600,000 600,000


    Share capital 2,000,000 260/100 5,200,000
    Retained earnings 1,050,000 200,000
    Total P3,650,000 P6,000,000

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